Traders of contracts that settle to the Federal Reserve's policy rate moved Wednesday to price in a firmer chance of another quarter-point interest-rate cut at the central bank's meeting next month, after a government report showed consumer inflation rose in October in line with economist expectations.

A higher neutral rate could limit interest rates’ decline, Minneapolis Federal Reserve President Neel Kashkari said.

The Consumer Price Index rose 2.6% versus a year ago in October — falling in line with expectations, the Labor Department said on Wednesday.

U.S. stock index futures edged lower on Wednesday as an uptick in Treasury yields weighed on rate-sensitive equities ahead of crucial inflation data that will offer more signals on the pace of the Federal Reserve's interest rate reductions.